Study of wood products with FSC certification

Transcription

1 DR/34/06/P&PD 14/02/2007 Sir, Sub: Study of wood products with FSC certification The Rubber Board is a statutory body for the development of rubber plantation industry in India, functioning under the Ministry of Commerce, Govt. of India. The rubber tree is primarily grown for the production of rubber latex. At the age of years latex production becomes uneconomic and the trees are then cut and replanted. Thus rubber plantation is also a sustainable source of timber. In the past, rubberwood obtained at the time of replanting was mostly used as firewood and for packing cases. The timber as received is not durable. However, upon preservative treatment and seasoning, it can be used in many interior applications like furniture, interiors, building components, etc. This is also an eco-friendly plantation timber. Utilization of rubberwood reduces the pressure on tropical rain forest for timber

2 requirements. Thus, the Rubber Board has been promoting addition of rubberwood. processing and value Of late, we have come to know that rubberwood products with FSC certification can find better acceptance in the developed countries. We also gather that its demand is likely to come up in the Indian market in the near future. Before taking a final decision for going in for FSC certification for rubberwood products we would like to have a study conducted on the supply-demand, price advantages, market etc of such products. We plan to engage a competent and experienced Consultant for carrying out this study. I am enclosing a write up giving background information, Terms of Reference, etc, inviting proposals from such Consultants. In case you are interested, I request you to submit the proposal as detailed in the write up enclosed. Kindly note that the last date of receipt of the offer has to be received latest by is 3.00 PM on 19/03/2007 and the offers will be opened at 3.30 pm on 19/03/2007. Yours faithfully, DIRECTOR (P&PD)

3 3 STUDY OF WOOD PRODUCTS WITH FSC LOGO Background Information Rubber Board is a statutory body incorporated under the Rubber Act, 1947 functioning under the Ministry of Commerce and Industry, Govt. Of India for the development of the rubber plantation industry in India (www. rubberboard.org.in). Natural rubber is extracted in the form of latex from the Rubber tree, Hevea brasilensis, a native of Amazon river basin of Brazil. Commercial cultivation of rubber started in India in the state of Kerala in As a result of the activities of the Rubber Board in the last five decades rubber plantation has been extended to parts of Tamil Nadu, Karnataka, Orissa, Andra Pradesh, Goa, Maharashtra, Andaman & Nicobar Islands and North Eastern states. With over 5.7 lakh hectares under rubber, India is the fourth largest producer of natural rubber in the world, next only to Thailand, Indonesia and Malaysia. After planting it takes about 6 to 7 years for the tree to attain maturity so that latex can be extracted by the process of tapping. At the age of 32 to 35 years, the latex production becomes uneconomic and the trees are then cut and replanted. The timber obtained at the time of replanting upon treatment and seasoning can be used in many indoor applications like furniture, interiors, flooring, paneling, doors, partitions and in a variety of wood products. The timber has light colour (resembling white cedar), attractive grain structure, good wood working, staining, finishing and gluing properties and strength properties comparable to many hard woods. Being a plantation timber, rubber wood is accepted as an eco friendly timber world wide. Thailand and Malaysia have started processing and value addition of rubberwood about 30 years ago and they are quite advanced in supplying rubber wood products valued over 2 billion US dollars to Europe, UK, USA etc.

4 4 In India serious efforts in this area have been initiated only about 12 years ago and only about 17% of the available rubberwood is used for processing and value addition. Traditionally, timber is being sourced from forest and the indiscriminate deforestation is leading to many natural calamities and climate change all over the world. As result of the above, we understand that demand of wood products from responsibly managed forests/plantations is going up in the developed countries. FSC (Forest Stewardship Council) is an international non profit organization with a founding mission to provide a truly independent, international and credible labeling scheme for timber and timber products. It offers FSC certification under FSC logo to wood produced from responsibly managed forests / plantations, meeting the principles and criteria prescribed by FSC ( Under the FSC, a plantation / forest will have a Forest Management Certification (FMC) and the factory converting the timber into a product is given a Chain of Custody Certificate (COC). According to our information, the certified forest / plantation in the world is on the increase and now the total area is about 68 Million ha spread over in 66 countries with 775 certificates. Similarly, there are 4350 Chain of Custody Certificates operating in 73 countries. We are looking into FSC certification for rubberwood products made in India to make it more acceptable to the international community. We also gather that the demand for FSC certified products in India is likely to come up as a result of the Green Building concept catching up and also because of the inertest shown by the corporate majors to show their commitment to the environment and for sustainable development.

5 5 FSC certification is generally valid only for five years and after that it has to be revalidated. There will be initial certification and annual auditing. Thus there is a cost associated with FSC certification. Rubber wood log prices are much more in India than in Thailand or Malaysia. The factories in India are much smaller in capacities compared to those in other countries. Hence at present the factories are finding it difficult to compete with those of other countries. Hence before we go into FSC certification we would like to have a study conducted on supply / demand situation of FSC certified products, price preference, markets, suppliers, buyers, consumers and type of products. In this context the Board proposes to engage a consultant to study the above aspects. Terms of Reference for the study Identify wood products with FSC logo traded in the international market along with the value productwise, countrywise - for the last three years. Out of the above, which are the products made out of rubberwood carrying FSC logo and the corresponding value countrywise, productwise - for the last 3 years. Premium obtained by the manufacturers and extra payment made by the consumers, if any, for the wood products with FSC logo and also for rubberwood products with FSC logo as against non certified products productwise, countrywise - for the last three years and the trend for the future. Manufacturers / suppliers of wood products with FSC logo countrywise, productwise. Manufacturers of rubberwood products with FSC logo countrywise, productwise. Distribution channels and market outlets for wood products with FSC logo countryside, productwise.

6 6 Consumers of wood products with FSC logo country wise and their perceptions and future trends. Consumers of rubberwood products with FSC logo country wise and their perceptions and future trends. Estimates of demand and supply of certified wood products product wise, countrywise and projections for the next 5 years. Estimates of demand and supply of certified rubberwood products product wise, countrywise and projections for the next 5 years. Supply and demand situation of wood products and rubberwood products with FSC certification in the Indian market and future prospects. Projections of supply and demand for certified wood products and certified rubberwood products in the Indian market for the next 5 years and future prospects. Price advantage of certified wood products viz., uncertified products in the Indian Market. Recommendations on creating market awareness, distribution channels, market promotion for certified rubberwood products from India for the domestic and international markets. Any other information relevant in arriving at a decision to go in for FSC certification for rubberwood products from India. Time schedule for submission of reports The inception report has to be submitted within three weeks of the acceptance of the offer. An interim report has to be submitted in two months from the acceptance of the offer. Final draft report to be submitted within four months of the acceptance of the offer and The final report has to be submitted within one month of the acceptance of the final draft report.

7 7 Submission of proposals The proposal has to be submitted in sealed envelope addressed to The Director (P&PD), Department of Processing & Product Development, Rubber Board, Kottayam , Kerala State. The proposal has to be prepared in two parts one marked as Technical Bid containing all technical details and proposals and terms & conditions and the second one marked as Financial Bid indicating itemwise price for the items / activities mentioned in the Technical Bid. The Bids shall be put in two separate sealed envelopes duly superscribed as TECHNICAL PROPOSAL and FINANCIAL PROPOSALS. Both the sealed envelopes are to be put in another envelope sealed and superscribed OFFER FOR STUDY OF FSC CERTIFICATION OF WOOD PRODUCTS DUE ON and sent so as to reach the Director (P&PD) before 3.00 pm on Technical proposal The technical offer should contain the following information : Background information on the firm to show their experience, expertise and facilities to conduct the study and the list of similar studies undertaken in the last three years along with the clients. The methodology proposed for the study including mode of collection of data, its analysis and other details for preparing the report. List of personnel proposed to be engaged for the work along with their names, educational qualifications and experience in the same or related field. Financial proposal The financial proposal should include total amount payable to the firm for completing the work and submission of the final report. Taxes, duties or any other levies to be paid are to be shown separately. Statutory deduction of income tax will be made from the payment due as per the rules in force.

8 8 The break up of the cost of services and other costs involved in conducting the study should be provided. Mode of payment The Board intends to give full payment upon submission of the final report and its acceptance. However, the firm may indicate their preference on stagewise terms of payment. For any advance given, a bank guarantee for an equal amount will have to be given. The firm whose offer is accepted will be required to execute an agreement with the Board for due fulfillment of the work. Opening of offers and evaluation The offers received upto 3.00 pm on will be opened at 3.30 pm on in the office of the Director (P&PD) referred above, in presence of the representatives of the firms who choose to be present. In case the above date happens to be a closed holiday for the Board, the opening time will stand postponed to the same time on the next working day. The evaluation of the proposals will be conducted in two stages First all the technical proposals will be opened and evaluated. Thereafter the financial proposals of only those firms whose technical offers have been accepted will be opened for financial scrutiny, evaluation and sanctioning and the work will be awarded to the most competitive evaluated offer. If required, a discussion and negotiation also will be conducted with the selected party. Information to be provided by the Rubber Board Information available with the Board regarding the major rubberwood processors in India and their product range can be shared with the firm. Information available on FSC certification also can be shared. More information on FSC certification will be available at the following websites:

9 The Director (P&PD) reserves the right to accept any of the offers or reject any or all the offers without assigning any reason thereof. 14/02/2007 DIRECTOR (P&PD)